Budget Deficits and Budget Institutions

Author/Editor:

Alberto Alesina ; Roberto Perotti

Publication Date:

May 1, 1996

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

By discussing the available theoretical and empirical literature, this paper argues that budget procedures and budget institutions do influence budget outcomes. Budget institutions include both procedural rules and balanced budget laws. We critically assess theoretical contributions in this area and suggest several open and unresolved issue. We also examine the empirical evidence drawn from studies on samples of OECD countries, Latin American countries and the United States. We conclude with a discussion of the normative implications of this literature and with some concrete proposals.

Series:

Working Paper No. 1996/052

Subject:

Budget planning and preparation Fiscal consolidation Fiscal law Fiscal policy Government debt management Public financial management (PFM)

English

Publication Date:

May 1, 1996

ISBN/ISSN:

9781451847208/1018-5941

Stock No:

WPIEA0521996

Pages:

36

Please address any questions about this title to publications@imf.org